Services Under SAC Code 998240
Insolvency services cover professional support for businesses and individuals who are unable to repay their debts. Specialists handle insolvency proceedings, act as resolution professionals, manage assets and guide corporate restructuring so that value is protected as far as possible. These insolvency services often work closely with corporate restructuring services and legal advisors. Under GST, such insolvency services are classified under SAC 998240. This SAC code and its GST rate decide how GST is charged on insolvency and restructuring related professional fees.
Services GST Rate for SAC Code 998240
Insolvency, liquidation and related restructuring support under this SAC code are treated as professional legal and accounting related services under GST. The taxable value usually covers professional fees, success fees and administration charges, excluding any statutory payments to regulators or courts that are collected from clients and deposited at actuals.
After the September 2025 rationalisation, most taxable insolvency and restructuring services that are not specifically exempt are generally placed in the 18% slab with input tax credit for eligible registered recipients. Any reverse charge or special treatment notified for services to particular entities should be checked carefully before finalising how GST is to be charged.
The table below summarises the prevailing GST treatment for SAC code 998240, showing the standard 18% slab for taxable insolvency services and any notified special cases.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998240 | Insolvency and receivership services | 18% with ITC | 18% with ITC | Listed at 18% in legal-services schedules and in insolvency-specific GST explainers. No separate 5% or 40% entry exists for this code in the latest structure. |
Insolvency professionals and firms using this SAC code should clearly show their fee value, GST rate in % and GST amount on tax invoices. The same SAC and tax treatment should be followed in GSTR 1 and GSTR 3B so that corporate clients can book expenses correctly and support their input tax credit during GST reviews.
Explore Other SAC Codes Under 9982
These SAC codes fall under the legal and accounting services group 9982, which covers legal advisory, court representation, tax consulting, financial auditing, accounting, payroll, insolvency and wider business support services. Each six digit SAC within this group points to a specific professional service type for GST classification.
The list below highlights key six-digit SAC codes under 9982.
Law firms, insolvency professionals, CA firms and business service providers should pick the SAC that best matches their main service, such as insolvency services, accounting, payroll or corporate tax consulting. Correct SAC selection and GST rate application in % help clients book expenses properly, claim input tax credit where allowed and handle GST queries or audits with confidence.
Conclusion
Insolvency services under SAC 998240 cover insolvency resolution, liquidation handling and related restructuring support for stressed businesses and individuals. Professional fees for these services are usually taxable at 18% with input tax credit for eligible registered clients, subject to any notified conditions. Insolvency professionals should use SAC 998240 on their invoices, apply the correct GST rate in %, show GST amounts clearly and follow the same treatment in GST returns so that clients can defend their input tax credit during reviews.
Important Disclaimer
The entire content on this page has been arranged to the best of the author's understanding and is subject to periodic updates as per the law for the time being in force. The above does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions cannot be ruled out. BUSY Infotech Private Ltd. and its associates will not be held responsible for any loss or damage arising from any inaccurate or incomplete information in this document. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.